2 "Enter the Dragoness": Firm Growth, Finance, Guanxi, and Gender in China Purpose: In this exploratory study we theorise and examine gender differences in the impact of financial capital on Chinese firms" growth, and investigate the role of guanxi (connections and networks) in the process of obtaining finance.Design/methodology/approach: A structured questionnaire was used to collect comprehensive financial data from 18 women and 69 men, which was analysed empirically.Findings: Women appeared to be no more disadvantaged from obtaining finance than men in China and in some respects appeared to be in a better position. Both women-and men-led firms were significantly stronger in relation to having access to enough finance to grow than at the start-up phase. A majority of participants in our study used guanxi to access finance.Furthermore, we found that guanxi was used equally by men and women, and that guanxisourced finance comprised a significant proportion of the overall capital obtained.
Research limitations/implications:One major limitation of our study was that, of the 87 questionnaires returned, 21% were women and 79% were men and, although the findings were not representative or generalisable, the results do suggest a number of possible avenues for future research.
Originality/value:We have illuminated the under-explored area of the financing of growth in women-led firms in China. This research agenda is particularly important because (a) SME finance in China is a key need-to-know area (Anderson et al, 2003), (b) there is a paucity of specific research on financing women entrepreneurs in China and (c) of the phenomenal rise of women"s entrepreneurship in China.